Thailand's industrial confidence drops in April-Xinhua

Thailand's industrial confidence drops in April

Source: Xinhua| 2024-05-15 17:43:00|Editor: huaxia

BANGKOK, May 15 (Xinhua) -- Thailand's industrial confidence fell in April due to sluggish domestic demand, the government's plan to increase minimum wage and intensifying drought, official data showed on Wednesday.

The Thai Industries Sentiment Index dropped to 90.3 last month from 92.4 in March as all components of the index decreased, including overall sales, total orders, production volume, production costs and business performance, according to the Federation of Thai Industries (FTI).

The reading was based on a survey of 1,268 entrepreneurs from 46 industry groups under the FTI.

The decline in confidence was attributed to a slowdown, particularly in the automotive sector, owing to economic uncertainties, which led to cautious consumer spending, the FTI said in a statement.

The index forecast for the next three months sank to 98.3 in April from 100.8 a month earlier, brought down by the risks of severe drought causing water shortages for consumption, both in agricultural and industrial sectors, coupled with lower foreign tourist arrivals during the low season and prolonged geopolitical tensions.

FTI Chairman Kriengkrai Thiennukul urged the government to postpone the national minimum wage hike plan, saying the minimum rate should be adjusted based on local economic factors in each province.

The group also called for the implementation of energy price relief measures to reduce production and living costs while promoting the use of alternative energy sources, he told a news conference.